COVID-19 – General Overview of Coronavirus Assistance Programs

Covid-19-Adobe-Stock-Photo-300x171In response to the unprecedented challenges presented by the Coronavirus pandemic, several Federal and State laws have been passed to assist businesses during these difficult times.  Some cities have enacted ordinances, and certain companies have announced programs to assist their customers in dealing with the impact of the COVID-19 virus.  These programs include:

Federal Programs

  • The Paycheck Protection Program
    • $350 billion in federally guaranteed funds for loans to small businesses, sole proprietorships, independent contractors and self-employed individuals t
    • Loans may be forgiven if the borrower maintains its payroll during the Coronavirus crisis, or restores its payroll immediately afterward
  • Deferred payment of employer’s share of payroll taxes for eligible employers
  • Economic Injury Disaster Loans
    • Small Business Administration (SBA) loans of up to $2 million to pay for payroll, fixed debts, accounts payable and certain other business expenses
    • These are loans, and do need to be repaid
    • Subsidized Interest Rates
    • Available only to small businesses without other access to credit
    • Limited to areas that have been designated as Economic Disaster areas by the SBA
  • Economic Injury Grants
    • If you apply for an Economic Injury Disaster Loan, you may request an Emergency Economic Injury Grant of up to $10,000
    • These are grants, which do not need to be repaid
  • SBA Debt Relief
    • Assistance with principal and interest payments for some existing SBA loans and some new SBA loans
    • Automatic deferral of loan payments due under some existing SBA loans
  • Employer Tax Credits to assist with covering the cost of new paid sick leave and FMLA leave obligations
    • Eligible employers can receive a 100% tax credit against payroll tax liability up to the capped amount of benefit payment obligations

California Programs

  • Delayed deadline for small businesses to file State tax returns and make certain tax payments until July 15
  • CA IBank Finance Programs
  • Provides loan guarantees of up to $1 million for eligible small business borrowers in declared disaster areas
  • Provides loans of up to $10,000 to low-wealth entrepreneurs in declared disaster areas
  • Extensions for State Payroll Taxes
  • Employers experiencing hardship may request an extension to file state payroll reports and/or deposit state payroll taxes without penalty or interest
  • California Capital Access Program
  • May provide coverage for some types of loan defaults

City Programs

  • San Francisco
  • Emergency grants of up to $10,000 for affected small businesses
  • Deferments for payment of first quarter taxes for eligible businesses
  • San Jose
  • Approved creation of pool of public funds to assist eligible small businesses with rent payments


Programs Offered by Private Businesses

            Although these programs are generally not yet available, a number of companies have announced that they will be offering assistance to small and medium sized businesses, including:

  • Facebook
    • $100 million in cash and ad credits available to more than 30,000 businesses advertising with Facebook
  • Google
  • $340 million in Google Ad credits for eligible accounts active since the beginning of 2019
  • $200 million to help provide small and medium businesses with access to capital
  • $20 million in grants to community financial institutions to assist small businesses

Call an Experienced LA Business Lawyer Today 

To schedule your consultation with one of our LA business attorneys, call Structure Law Group, LLP today at (310) 818-7500 or contact us online.